A Comparison of Stochastic Scheduling Rules for Maximising Project Net Present Value

Author

Kum Khiong Yang, Singapore Management UniversityFollow
L C Tay
C. C. Sum

Publication Type

Journal Article

Publication Date

1995

Abstract

This paper examines the use of stochastic scheduling rules for maximizing the net present value of a project. A comprehensive set of 1440 test problems, representing five different project characteristics, is constructed. These test problems are used to evaluate the performance of nine stochastic scheduling rules. A simulated annealing scheduling procedure is shown to perform best, generating the highest net present values for most of the test problems. In certain environments, two previously examined rules, the Rank Positional Weight and a Discounted Cumulative Cash Flow Weight rule, also perform well with high net present values.

Keywords

Project scheduling, Stochastic sampling, Simulated annealing

Discipline

Business

Research Areas

Operations Management

Publication

European Journal of Operational Research

Volume

85

Issue

2

First Page

327

Last Page

339

ISSN

0377-2217

Identifier

10.1016/0377-2217(94)00039-f

Publisher

Elsevier

Citation

Yang, Kum Khiong; Tay, L C; and Sum, C. C.. A Comparison of Stochastic Scheduling Rules for Maximising Project Net Present Value. (1995). European Journal of Operational Research. 85, (2), 327-339.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/2225